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Greece has just introduced a six-day workweek policy, effective July 1st, 2024, aimed at enhancing productivity and combating its persistent unemployment issues. As of May 2024, Greece's unemployment rate stands at 10.6%, showing a decline from previous years but still reflecting significant economic challenges. The question for me remains whether the best way to overcome these challenges and optimize a working populace is by extending the workweek.
Although early into its life, the new policy has sparked widespread debate. Will Greece see a boost in productivity and improve its economic conditions, or does this choice have a higher chance of stagnating the workforce further and damaging work ethic and morale? Let's explore both sides of the coin.
The economic context
So, why is Greece in a position requiring such a drastic change? The answer is fairly simple — Greece has faced substantial economic hardships over the past decade, particularly since the debt crisis in the early 2010s, which saw unemployment rates soar to nearly 28% in 2013.
Clearly unsustainable, Greece has done a great job bringing the unemployment rate back down to 10.6%, and this indicates recovery. However, it's all relative. In fact, 10.6% remains one of the highest in the Eurozone. Greece's government needed to do more, and this decision to implement a six-day workweek was therefore driven by a need to stimulate economic activity and reduce joblessness.
Pros of the six-day workweek
The first possibility is that the six-day workweek could lead to higher overall output. Of course, by increasing the number of workdays, businesses might achieve more consistent productivity and reduce downtime. Businesses maximize the utilization of their resources in a setup like this, both fiscally and personally. However, while this extra utilization might drive economic growth and a reduction in unemployment, you are also more likely to experience burnout in the team and drop morale. What is the impact of this? A decrease in productivity.
There are many pieces to this puzzle. Some sectors, particularly those reliant on continuous operations, might benefit from the extended workweek. More workdays can translate to more production and customer engagement for industries like manufacturing and services, which might help businesses recover faster in a still fragile economy.
Greece is seemingly clued up on this, as the new law will only be valid for employees of private businesses and manufacturing plants that operate 24 hours a day, including certain retail and agricultural workers.
Additionally, the law (specifically Law 5053/2023), which was passed by parliament at the back end of 2023, clarifies that the employee's extra day/hours are capped at 8 hours. Employers can also decide whether a worker should come in and work for this sixth day. There is flexibility, which could be critical to the tactic's success. The incentives are also pretty significant — employees would be paid 40% overtime for the wages covering the extra time.
Related: Why 'Quiet Fridays' Are the First Step Towards a 4-Day Workweek
Downsides and alternatives
Despite these potential benefits, it most definitely is not guaranteed to be all sunshine and rainbows for Greece. Plenty of research and practical experience suggests that extending the workweek might not be the most effective strategy for boosting productivity.
Longer working hours can lead to employee burnout, decreased job satisfaction, and lower overall productivity in the long term. A 2014 study by Stanford University found that productivity per hour declines significantly when the workweek exceeds 50 hours and drops off so sharply after 55 hours that there is no point in working anymore.
Furthermore, the quality of work can suffer when employees are overworked. Creative and cognitive tasks, which are crucial in many modern industries, are often better performed with adequate rest and a balanced work-life schedule.
Obviously, we all have different working styles, but the current shift towards remote and asynchronous work models benefits the workforce generally. Flexibility can improve productivity and employee well-being, so long as you choose your employees carefully.
Related: Why Hybrid Work Is Failing Your Employees
Embracing modern work practices
To lead on from that last point, we know that Greece cannot choose its employees, and so it does not have the luxury of pinpointing specific industries or working methods for specific personnel. Therefore, it makes sense to implement a fairly broad 'fix,' even if it is not all-inclusive.
What I wonder, though, is whether they could benefit more from embracing modern work practices that focus on flexibility, remote work, and asynchronous communication as ways to improve output.
At Bubbles, we facilitate asynchronous communication and change how colleagues have virtual meetings. If building and using Bubbles has taught me anything, it's that updates, feedback, and ideas do not need to be given within the same four-wall boundary. In fact, a quicker, more efficient way involves being apart and being more flexible.
Studies have shown that commitment to asynchronous communication and collaboration has reduced the amount of real-time meetings teams have by up to 38%. Who knows what might happen in terms of output if Greece were to focus and invest in the efficiency of the current 40-hour workweek instead of keeping this largely similar while solely boosting the amount of time people spend doing it.
To provide some positive context to this rationale, we can look at companies like Atlassian and Slack, which have reported higher employee satisfaction and productivity by minimizing meetings and focusing on deliverables rather than hours worked.
I can understand this idea fully, but whether the execution is correct is another matter. While the decision makes sense within Greece's economic context, it is crucial to consider the potential long-term impacts on employee well-being and productivity and, as such, the alternatives for optimizing the current format of Greek working culture and striking a balance between economic growth and morale.
